FOR IMMEDIATE RELEASE News Media Contact:
October 13, 1999 Michelle Russo at (202) 418-2358
FCC CHAIRMAN KENNARD RELEASES CABLE STAFF REPORT ON
THE STATE OF THE BROADBAND INDUSTRY
Provides Evidence of Emerging Competition and Importance of National Policy
Washington, DC – FCC Chairman William E. Kennard today released a report by the staff of
the Cable Services Bureau on the state of the broadband industry. The report concluded the
broadband industry is in its infancy and regulatory restraint continues to be warranted at this
time.
Chairman Kennard said, “This report provides an objective and detailed snapshot of the
broadband industry and a thorough overview of the technical and public policy issues related to
this dynamic and promising market. I’m sure the report will prove to be a valuable resource to
those seeking to understand the many competing issues and interests that must be balanced to
insure that American consumers soon will be able to receive advanced services at competitive
prices.”
Chairman Kennard asked the Cable Services Bureau to convene monitoring sessions with
key stakeholders and this preliminary report summarizes the findings from the meetings held
thus far. The Cable Bureau, working with the Common Carrier Bureau, the Office of Plans and
Policy and the Office of Engineering and Technology, will continue to engage in ongoing
dialogue with various stakeholders and fulfill the Chairman’s pledge to monitor the industry.
The monitoring sessions invited key industry stakeholders to weigh in with their opinions
and observations. These included representatives from Internet service providers, online service
providers, local exchange carriers, long distance telephone companies, cable operators,
community organizations, financial analysts, academics and local franchising authorities (LFAs).
The Cable Bureau asked the participants to engage in a candid, not-for-attribution, discussion of
the major issues and challenges facing consumers, the industry, regulators and policy makers
with respect to the deployment of broadband services.
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The report outlined some preliminary findings about the broadband industry to date:
? The broadband industry is in its infancy.
? Cable modem deployment has spurred alternative broadband technologies, like digital
subscriber lines (DSL).
? Regulation or threat of regulation ultimately slows deployment of broadband.
? Market forces will compel cable companies to negotiate access agreements with unaffiliated
ISPs, preventing cable companies from keeping systems closed and proprietary.
? If market forces fail and cable becomes the dominant means of Internet access, regulation
might then be necessary to promote competition.
? Rapid nationwide broadband deployment depends on a national policy.
The report acknowledged the risks associated with a regulatory policy of forbearance. Risks
exist, such as the threat of a cable monopoly of broadband, the creation of an irreversibly closed
system and the threat of inconsistent local regulation. Notwithstanding these risks, the Cable
Services Bureau concluded that the better course of action is regulatory restraint. The Cable
Bureau staff recommended that if the threat of a monopoly emerges, the Commission should
move swiftly and consider regulatory options.
The report noted that the Commission’s national broadband policy is facilitating vigorous
deployment and competition. The Cable Bureau staff also said that this policy upholds the spirit
of the 1996 Act’s objective to promote competition and reduce regulation in order to secure
lower prices and better services for Americans.
A full copy of the report can be found at the FCC website (www.fcc.gov) on the
Broadband Internet Access page.
-FCC-
Report No. CS 99-14
Cable Services Bureau Contacts: Deborah A. Lathen, Adonis Hoffman, To-Quyen Truong, Clint
Odom at (202) 418-7200.
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News media Information 202 / 418-0500
Fax-On-Demand 202 / 418-2830
TTY 202/418-2555
Internet: http://www.fcc.gov
ftp.fcc.gov
Federal Communications Commission
445 12th Street, S.W.
Washington, D. C. 20554
This is an unofficial announcement of Commission action. Release of the full text of a Commission order
constitutes official action. See MCI v. FCC. 515 F 2d 385 (D.C. Circ 1974).